Gupta, who has already bought two small Tata steel mills, wants government aid in facilitating his rescue plan.

Another suggestion involves taxpayers taking a stake in the steelworks.

This particular plan is favoured by Business Secretary Sajid Javid and was cautiously welcomed by Roy Rickhuss, the head of the steel union.

He said: "Mr Javid should bring forward further details of what ‘co-investment’ would look like and share his plans with the unions so we can ensure that the best interests of steelworkers are upheld.

"There are still many steps to be taken and yet again we call on the Government to match the rhetoric of its ministers with action and to continue to work with the community to save our steel."

One obstacle that all of these prospective rescue plans will have to overcome is the £14billion British Steel Pension Scheme, which is said to have a £2bn deficit on a buyout basis.

This particular stumbling block would require huge financial means in order to be taken on.

Mr Wilkie is expected to reveal the takeover plan tomorrow.

The board of Tata, whose activities include cars, hotels, IT outsourcing, chemicals and tea, will meet on May 28 to decide which of the bidders it will hold talks with.

Last month Tata put its UK steel operations, which have been haemorrhaging money for years due to cut-price Chinese competition, up for sale. The value of Tata Steel UK, which employs more than 15,000 people, has since been reduced to almost zero.